A mining workers’ body in India, Karnataka Gani Avalambithara Vedike (KGAV) asked the state chief minister B S Yadiyurappa to expedite the process to seek permission from the central government authorities to sell iron ore from Karnataka in other markets.
In June end, the state’s iron ore surplus stood at 5.19mn mt, according to media reports. The glut of iron ore in Karnataka was due to the production cap and ban on exports imposed by the Supreme Court of India in 2012. The apex court had also canceled ‘C’ category mining leases in the state.
KGAV believes removal of restriction could help the state economy tide over losses arising from the COVID-19-related lockdowns and help locals secure a livelihood.
At present, miners in Karnataka have been selling iron ore to steelmakers in the state with over 70pc of their sales to JSW Steel. But considering the estimated produce of around 36.66mn mt compared to a consumption of 32.62mn mt in 2020-21, the state could continue to face an oversupply situation.